Half Yearly Report December 2024
Contents
PAGE | ||
Corporate Information | 2 | |
Directors' Review | 3-4 | |
Directors' Review - Urdu | 5-6 | |
Independent Auditor's Report on Review of Condensed Interim | ||
Financial Statements to the Members | 7 | |
Condensed Interim Statement of Financial Position | 8 | |
Condensed Interim Statement of Profit or Loss | 9 | |
Condensed Interim Statement of Comprehensive Income | 10 | |
Condensed Interim Statement of Cash Flows | 11 | |
Condensed Interim Statement of Changes in Equity | 12 | |
Notes to the Condensed Interim Financial Statements | 13-27 | |
CENTURY PAPER & BOARD MILLS LIMITED
1
Corporate Information | |
Board of Directors | |
Iqbal Ali Lakhani | - Chairman |
Amin Mohammed Lakhani | |
Babar Ali Lakhani | |
Anushka Lakhani | |
Asif Qadir | |
Ali Aamir | |
Aftab Ahmad | - Chief Executive Officer |
Advisor | |
Sultan Ali Lakhani | |
Audit Committee | |
Ali Aamir | - Chairman |
Amin Mohammed Lakhani | |
Babar Ali Lakhani | |
Human Resource & Remuneration Committee | |
Asif Qadir | - Chairman |
Amin Mohammed Lakhani | |
Anushka Lakhani | |
Aftab Ahmad | |
Chief Financial Officer | |
Muhammad Rashid Dastagir | |
Email: rashid-dastagir@centurypaper.com.pk | |
Company Secretary | |
Mansoor Ahmed | |
Email: mansoor-ahmed@centurypaper.com.pk | |
External Auditors | |
BDO Ebrahim & Co. | |
Chartered Accountants | |
Email: info@bdoebrahim.com.pk | |
Shares Registrar | |
FAMCO Share Registration Services (Private) Limited | |
8-F, Near Hotel Faran, Nursery, Block-6, P.E.C.H.S. Shahra-e-Faisal, Karachi. | |
Phone: (021) 34380101-5, 34384621-3 | |
Email: info.shares@famcosrs.com | |
Website: www.famcosrs.com | |
Head Office and Registered Office | |
Lakson Square, Building No.2, Sarwar Shaheed Road, Karachi-74200, Pakistan. | |
Phone: (021) 38400000 | |
Fax: (021) 35684336, 35683410 | |
Email: info@centurypaper.com.pk | |
Website: www.centurypaper.com.pk | |
Lahore Office | |
14-Ali Block, New Garden Town, Lahore-54600, Pakistan. | |
Phone: (042) 35886801-4 | Fax: (042) 35830338 |
Mills | |
62 KM, Lahore-Multan Highway, N-5, District Kasur, Pakistan. | |
Phone: (049) 4388161-5 | Fax: (049) 4388160 |
HALF YEARLY REPORT DECEMBER 2024 | |
2 |
Directors' Review
On behalf of the Board of Directors, we are pleased to present the performance review of your Company together with the unaudited financial statements for the period under review (July-December 2024) that ended on December 31, 2024.
OPERATIONS AND SALES REVIEW
During the period under review, the Company produced 85,593 metric tons (L.Y. 94,297 metric tons). The sales volumes for the period under review stood at 88,031 metric tons (L.Y. 94,384 metric tons). In terms of value, the net sales were recorded at Rs. 19,803 million (L.Y. Rs. 22,079 million).
The Company's sales volumes declined due to both reduced market demand and unfair competition from cheaper imports, particularly Coated Bleached Board (CBB). Although anti-dumping duties are in place, traders have circumvented these measures by misclassifying product descriptions. In response, the Company, along with the domestic industry, filed an application for anti-circumvention duty (ACD), the determination of which is delayed due to ongoing litigation. A 10% regulatory duty was imposed, effective July 1, 2024, as a swift measure to curb cheaper imports. However, it expired on December 31, 2024, and could not be extended despite the domestic industry's concerted efforts. Nevertheless, Your Company will continue to actively pursue the efforts ensuring that the local industry receives the protection and support it rightfully deserves in the face of ongoing challenges.
FINANCIAL PERFORMANCE
The Company posted a gross profit of Rs. 1,803 million (L.Y. Rs. 2,056 million) for the period under review. Reduced sales volumes and lower selling prices for the Company's products compared to the corresponding period impacted gross profit; however, decreased raw material and energy costs helped to partially offset this decline. The net operating profit for the period under review was recorded at Rs. 1,328 million (L.Y. Rs. 1,529 million).
The finance cost for the period under review stood at Rs. 955 million (L.Y. Rs. 948 million). Interest rates gradually declined during the period due to policy rate cuts; however, the benefit was offset by elevated working capital requirements.
The Company reported profit before and after tax for the period at Rs. 372 million (L.Y. 581 million) and Rs. 201 million (L.Y. Rs. 354 million) respectively.
EARNINGS PER SHARE
The basic earnings per share for the period under review is reported at Rs. 0.50 (L.Y. Rs. 0.88). There is no dilution effect on the earnings per share for the period under review.
CENTURY PAPER & BOARD MILLS LIMITED
3
Directors' Review
NEAR TERM OUTLOOK
While macroeconomic stabilization has boosted economic confidence, industrial demand remains sluggish, with large-scale manufacturing suffered further contraction of 1.25% during the period under review. This subdued performance continues to exert pressure on demand in the paper and board industry. Furthermore, the domestic paper and board industry faces significant headwinds from a surge in low-cost imports, eroding local manufacturers' market share. The industry has actively engaged with government authorities, advocating for a level playing field as explained in earlier para of this report. Fair competition is crucial for this capital-intensive industry, a significant contributor to national revenue and a source of livelihood for a large workforce, both directly and throughout its supply chain.
In the extremely challenging market dynamics, we expect cost pressures to ease, supported by operational efficiencies from recent plant upgrades, a favorable energy mix, moderating material and fuel prices, successive policy rate cuts, and declining inflation. These factors are likely to provide a cushion, enabling us to adjust our pricing strategies in response to market conditions and navigate the complexities of the current economic landscape.
ACKNOWLEDGMENTS
The Directors wish to acknowledge the devotion of the employees of all cadres and are appreciative of their dedication and commitment. They also extend heartfelt appreciation to the Company's suppliers, customers and bankers for their continued confidence and support.
On behalf of the Board of Directors
IQBAL ALI LAKHANI | AFTAB AHMAD |
Chairman | Chief Executive Officer |
Karachi: February 12, 2025
HALF YEARLY REPORT DECEMBER 2024
4
2024 | 2024 |
94,297 | 85,593 |
94,384 | 88,031 |
19,803 | |
22,079 | |
2,056 | 1,803 |
1,529 | 1,328 |
948 | 955 |
581 | 372 |
354 | 201 |
CENTURY PAPER & BOARD MILLS LIMITED | |
5 |
0.88 | 0.50 | |
2025 | 12 | |
HALF YEARLY REPORT DECEMBER 2024 | ||
6 |
Independent Auditor's Report on Review of
Condensed Interim Financial Statements to the Members
Introduction
We have reviewed the accompanying condensed interim statement of financial position of CENTURY PAPER & BOARD MILLS LIMITED ("the Company") as at December 31, 2024 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of cash flows, condensed interim statement of changes in equity and notes to the condensed interim financial statements for the half year ended December 31, 2024 (here-in-after referred as the "interim financial statements"). Management is responsible for the preparation and presentation of this interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial statements. Our responsibility is to express a conclusion on this interim financial statements based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements is not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting.
Other matter
The figures for the quarters ended December 31, 2024 and December 31, 2023 in the condensed interim statement of profit or loss and condensed interim statement of comprehensive income have not been reviewed and we do not express a conclusion on them.
The engagement partner on the review resulting in this independent auditor's report is Tariq Feroz Khan.
KARACHI | |
BDO EBRAHIM & CO. | |
DATED: February 24, 2025 | Chartered Accountants |
UDIN: RR202410166J8eLztMva | Engagement Partner: Tariq Feroz Khan |
CENTURY PAPER & BOARD MILLS LIMITED
7
Condensed Interim Statement of Financial Position
as at December 31, 2024
Note |
ASSETS |
NON - CURRENT ASSETS |
Property, plant and equipment |
December 31, | June 30, |
2024 | 2024 |
(Un-audited) | (Audited) |
(Rupees in thousands)
Operating fixed assets | 7 |
Capital work in progress | 8 |
Intangible assets | |
Long-term advances | |
Long-term deposits | |
CURRENT ASSETS | |
Stores and spares | 9 |
Stock-in-trade | 10 |
Trade debts | |
Advances | |
Trade deposits and short term prepayments | 11 |
Other receivables | |
Tax refunds due from Government | 12 |
Taxation - net | |
Short-term investment | 13 |
Cash and bank balances | 14 |
TOTAL ASSETS | |
EQUITY AND LIABILITIES | |
SHARE CAPITAL AND RESERVES | |
Authorized share capital | |
1,000,000,000 (June 30, 2024: 1,000,000,000) | |
ordinary shares of Rs. 10 each | |
Issued, subscribed and paid-up capital | |
401,712,926 (June 30, 2024: 401,712,926) | |
ordinary shares of Rs. 10 each | |
Reserves | |
NON - CURRENT LIABILITIES | |
Long-term financing | 15 |
Lease liabilities against right of use assets | |
Deferred taxation | |
Deferred capital grant | 16 |
CURRENT LIABILITIES | |
Trade and other payables | 17 |
Short-term borrowings | 18 |
Interest and mark-up accrued | 19 |
Taxation - net | |
Unclaimed dividend | |
Current portion of : | |
Long-term lease liabilities against right of use assets | |
Deferred capital grant | 16 |
Long-term financing | 15 |
TOTAL EQUITY AND LIABILITIES | |
CONTINGENCIES AND COMMITMENTS | 20 |
10,168,976
812,402
10,981,378
19,585
19,237
9,831
11,030,031
3,834,937
8,612,457
5,473,634
109,876
377,664
45,195
996,656
151,326
303,411
779,418
20,684,574
31,714,605
10,000,000
4,017,129
9,865,314
13,882,443
3,015,500
6,652
666,891
120,509
3,809,552
4,729,973
7,468,132
204,294
-
1,639
8,827
81,473
1,528,272
14,022,610
31,714,605
10,648,823
856,358
11,505,181
14,692
8,599
9,831
11,538,303
4,060,143
6,857,445
5,086,269
133,793
407,107
14,045
651,333
-
-
788,493
17,998,628
29,536,931
10,000,000
4,017,129
9,664,757
13,681,886
3,741,044
11,276
818,660
158,609
4,729,589
4,950,854
4,304,161
227,900
6,160
1,643
12,170
93,211
1,529,357
11,125,456
29,536,931
The annexed notes from 1 to 33 form an integral part of these condensed interim financial statements.
IQBAL ALI LAKHANI | AFTAB AHMAD | MUHAMMAD RASHID DASTAGIR |
Chairman / Director | Chief Executive Officer | Chief Financial Officer |
HALF YEARLY REPORT DECEMBER 2024
8
Condensed Interim Statement of Profit or Loss
for the period ended December 31, 2024 (Un-audited)
Half year ended | Quarter ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Note | (Rupees in thousands) | |||||||||||||||
Restated | Restated | |||||||||||||||
Turnover - net | 21 | 19,803,166 | 22,078,648 | 9,670,930 | 10,681,074 | |||||||||||
Cost of sales | 22 | (18,000,566) | (20,022,627) | (8,899,291) | (9,893,953) | |||||||||||
Gross profit | 1,802,600 | 2,056,021 | 771,639 | 787,121 | ||||||||||||
General and administrative expenses | (517,424) | (482,525) | (245,167) | (238,249) | ||||||||||||
Selling expenses | (55,413) | (50,120) | (28,217) | (25,866) | ||||||||||||
Distribution expenses | (98,087) | (91,528) | (50,470) | (44,352) | ||||||||||||
Other operating charges | ||||||||||||||||
Workers' Profit Participation Fund | (20,002) | (31,187) | (6,736) | (4,818) | ||||||||||||
Workers' Welfare Fund | (7,601) | (11,851) | (2,560) | (1,831) | ||||||||||||
Others | (20,748) | (20,283) | (12,167) | (6,230) | ||||||||||||
(48,351) | (63,321) | (21,463) | (12,879) | |||||||||||||
Other income | 244,313 | 160,093 | 144,113 | 95,259 | ||||||||||||
Operating profit | 1,327,638 | 1,528,620 | 570,435 | 561,034 | ||||||||||||
Finance cost | 23 | (955,392) | (947,920) | (445,204) | (471,339) | |||||||||||
Profit before income tax and levy | 372,246 | 580,700 | 125,231 | 89,695 | ||||||||||||
Levy-Minimum tax differential | 25 | (110,390) | (80,287) | (110,390) | (64,963) | |||||||||||
Profit before income tax | 261,856 | 500,413 | 14,841 | 24,732 | ||||||||||||
Taxation | ||||||||||||||||
Current | (205,168) | (253,766) | (148,354) | (77,600) | ||||||||||||
Prior | (7,900) | - | (7,900) | - | ||||||||||||
Deferred | 151,769 | 107,581 | 194,701 | 107,581 | ||||||||||||
(61,299) | (146,185) | 38,447 | 29,981 | |||||||||||||
Profit for the period | 200,557 | 354,228 | 53,288 | 54,713 | ||||||||||||
Earnings per share - basic | ||||||||||||||||
and diluted (Rupee) | 24 | 0.50 | 0.88 | 0.13 | 0.14 | |||||||||||
The annexed notes from 1 to 33 form an integral part of these condensed interim financial statements.
IQBAL ALI LAKHANI | AFTAB AHMAD | MUHAMMAD RASHID DASTAGIR |
Chairman / Director | Chief Executive Officer | Chief Financial Officer |
CENTURY PAPER & BOARD MILLS LIMITED
9
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